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Feeder fund

A vehicle pooling many smaller investors into a single subscription in a main fund, allowing a manager to accept many small tickets without administering each directly.

Feeder fund — A vehicle pooling many smaller investors into a single subscription in a main fund, allowing a manager to accept many small tickets without administering each directly.

A feeder solves a specific arithmetic problem — letting many investors below a fund's stated minimum pool together to meet it — which is why they're central to how wealth-channel platforms and RIA aggregators access funds their individual clients couldn't reach alone.

Frequently asked questions

Why would a fund use a feeder structure?

To accept many smaller subscriptions without administering each one directly against the main fund, letting a manager reach the wealth channel or smaller institutional investors without lowering its actual fund minimum.

Does investing through a feeder change the underlying investment?

No — the feeder simply aggregates subscriptions; the underlying exposure is the same main fund, though there may be an additional layer of fees or administrative cost.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

Fund of fundsA fund investing in other funds rather than directly in assets. Professional selectors, in SubscriptionThe process and documents by which an investor commits to a fund, including eligibility ve

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